AMD takes CPU market share from Intel

By on September 12, 2007, 12:32 PM
During Q2 2007, AMD regained 2.5 percentage points on its world share of the microprocessor market from its arch-rival Intel which, in turn, suffered a 2 percentage point decrease according to the latest figures from market watcher iSuppli.

AMD's total quarter-on-quarter market share gain was greater than the 0.5 gain originally anticipated. That said, the struggling chip maker is still down 3.1 percent year-on-year, from last year’s 16.4 percent in the second quarter to its current 13.4 percent, and is way behind Intel’s dominant position with a 78.8 percent portion of the market.

AMD appears to be succeeding at its strategy of winning microprocessor market share by lowering prices. However, the company won’t be able to maintain such an aggressive pricing strategy in the long term if it expects to turn a profit. The stakes are high for AMD with Barcelona (and the upcoming Phenom for desktops), as the company is betting on its single-die quad-core chips to claw back market share lost to Intel.




User Comments: 4

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PanicX said:
I whole heartedly support processor manufacturers reducing prices to gain market share. How low can you go?
Fornacis said:
Keep cutting prices and reducing your profit margins to keep up in a battle you can't win. How long before the investors pull the plug?
peas said:
AMD and Intel are publically traded companies. They don't have to worry about investors "pulling the plug". They just need to be able to pay the bills.
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